A private house purchased for the prime minister's official residence when government shifted its base to Wellington in 1865, it was first greatly expanded and then, as its wooden structure deteriorated, shunned in the 1930s by the more modest political leaders on learning the cost of repairs.

It was leased to private individuals for six years in the late 1890s, then returned to use as an official residence for the prime minister until the Great Depression, when a new government in 1935 wished to avoid "show".

[10] In 1935 Prime Minister Michael Joseph Savage, faced with rebuilding the country's economy in the midst of the Great Depression, lived in Seddon's former residence at 47 Molesworth Street, later purchasing a house high in Northland.

It was rescued from this decline by Michael Bassett, Minister of Internal Affairs, who initiated moves for the restoration of the building to its early grandeur.

[19] Since 1990, the house has been the official residence of Prime Ministers Geoffrey Palmer, Mike Moore, Jim Bolger, Jenny Shipley, Helen Clark, John Key and Jacinda Ardern.

Prime Minister Bill English did not live at Premier House during his term (2016–2017) because New Zealand law prohibits Wellington-based MPs from claiming taxpayer-funded accommodation in the capital.

[20][22] Current Prime Minister Christopher Luxon initially lived in his own Wellington apartment rather than Premier House, citing maintenance issues.

[25] In early March 2024, Heritage New Zealand acknowledged that Premier House was in a dishevelled state as a result of the multiple purposes it serves.

[16] Tommy's Real Estate sales director Tim Clark has proposed demolishing the site and redeveloping it, claiming it was cheaper than renovating it.

[35] From 1939 Michael Joseph Savage (until 1939 at 47 Molesworth Street) lived in a house "Hill Haven" at 64–66 Harbour View Road, Northland, Wellington, which was subsequently used by his successor Peter Fraser until 1949.

It was purchased for Michael Joseph Savage "because it is now not necessary (to be within easy walking distance of Parliament) and a Prime Minister is no longer bound to the lowly areas of the Thorndon flats".

The house was subsequently used by Walter Nash, Keith Holyoake and Geoffrey Palmer, and as a ministerial residence by Jim Sutton and Nick Smith.